If you are an international businessman looking to extend your business to Europe, forming a Hungarian company might be one of the best solutions. By setting up your European base in Hungary, you can enjoy the lowest corporate tax rate, a Schengen visa, an immediate VAT number, low business costs.
As of 2017, Hungary’s corporate tax rate is only 9%, which is the lowest in Europe. This rate applies to all Hungarian companies regardless of size or turnover. Of course, it is calculated based on the company profit, not the total income.
Hungary is a member of the Schengen zone and the European Union. Non-EU nationals who create a Hungarian company are eligible for a Hungarian residence permit. This gives you the right to unlimited travel within the Schengen zone, as well as visa-free entry to a number of other countries.
Getting an EU VAT number can be difficult in some countries. Companies might have to submit lots of documentation and pay extra fees. Not so in Hungary: getting a VAT number is free and automatic here. As soon as your Hungarian company is set up, it has a VAT number ready to use. This gives you the right to trade VAT-free with a large part of your customers.
The cost of living and services is much cheaper in Hungary than in Western Europe. This means you can rent an office or hire top talent at a fraction of the western costs. In addition, the Hungarian economy is in a developing state, which means that there are more business opportunities to take advantage of. This makes Budapest a popular destination for international investors and entrepreneurs.
Company incorporation in Hungary only takes 4-5 business days. All you need is your passport, no need to submit tax records or certificates. You can even set up a Hungarian company with a Power of Attorney. This way, you only need to travel to Hungary once your company is up and running.
Contact us to learn how you can extend your business to Europe.
Last Updated 28.11.2019
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